Service tax from cyber cafe form filling

Hi,

 

One of my relatives is running a cyber cafe.

He also helps student fill online forms for various entrance exams through his online CURRENT bank account.

So students pay him in cash, he fills the online form for them, makes payment through his online CURRENT bank account in the name of his cyber cafe firm and charges 30 Rs. above the actual paid fee.

For e.g. if the form filling epayment is 1500 Rs., he takes 1530 in cash and makes online payment of 1500.

 

Because of high volume of work, his transactions are now crossing 50-60 lakhs. 

Assuming 4000 forms filled in a year for 1500 Rs each, takes his online payment to 60 Lakhs.

However, his profit is only 4000 forms * Rs. 30 = Rs. 1.2 Lakhs over a year.

 

The question:

1) Is he eligible to pay service tax?

2) If yes, what is the basis of that - should that be 60 Lakhs?

3) How to calculate the service tax to be paid? Will it be on 1.2 Lakhs net income or will it be on 60 Lakh transaction (turnover) amount?

 

Will appreciate any help on this.

 

Thanks